Sanderson gears up on road to UK and US acquisitions

Sanderson Group has been meeting with a series of network service companies in its search for a #10 million turnover acquisition to strengthen its position in the market.

The company offers systems integration, systems management and internet services. It also specialises in software for finance, public sector and commercial organisations.

Chief executive Christopher Winn told PC Dealer the company wanted a 'bolt-on' acquisition to give it a stronger impact.

'We want a bit more capability, more critical mass and a greater penetration of the market,' he said.

Winn ruled out simply buying into a business as the company had done in the past.

He said Sanderson had been in talks with companies for three to six months with a 100 per cent buyout in mind.

'Historically, Sanderson has been acquisitive, but we've concentrated on organic growth over the last few years. The time is right for a few bolt-on acquisitions.'

He said the company wanted to buy a North American company with turnover of up to #2 million. Both acquisitions would be complete before the end of the year.

Sanderson released its half year results last week, which showed a pre-tax profit of #4.05 million - a growth of 16 per cent on last year.

Turnover was virtually static at #34.7 million from #33.4 million, for which the firm cited a restrictive exchange rate.

Winn said substantial amounts had been invested in developing open system software products.

Revenue from software licence fees and service contracts contributed #14 million to the total turnover during the half year and covered 70 per cent of the company's overheads, he said.